A personal loan is the simplest way to arrange quick funds during a financial emergency. It is unsecured because you don’t need to pledge any collateral. You can take a loan for any purpose, such as medical emergencies, children’s higher education, etc. To get this loan, you must meet the lender’s eligibility criteria. Before taking a personal loan, you must compare loan products offered by various lenders based on interest rates, processing fees, and other charges to fetch the best deal for yourself. It is important to note that a personal loan’s best interest rates and repayment terms are usually offered to applicants with a credit score above 750.
The table below lists 10 banks currently offering the lowest interest rates on personal loans of Rs. 5 lakh for five years. Note that the interest rates applicable to you could be higher based on your loan amount, tenure, credit score or any other terms and conditions of your chosen lender.
| Bank Name | Lowest Advertised Interest Rates On A Personal Loan |
| Bank of Maharashtra | 8.90% |
| Bank Of India | 9.75% |
| Punjab National Bank | 9.80% |
| Bank of Baroda | 10.25% |
| Kotak Bank | 10.25% |
| Indian Bank | 10.30% |
| Federal Bank | 10.49% |
| IDFC Bank | 10.49% |
| IndusInd Bank | 10.49% |
| ICICI Bank | 10.50% |
Disclaimer: The latest interest rates on personal loans for all listed (BSE) public and private banks were considered for data compilation. Banks for which data was not available on their website were not considered. Data was collected from the respective bank’s website on Dec 2, 2022. Banks are listed in ascending order, i.e. bank offering the lowest interest rate on a personal loan is placed at the top and highest at the bottom. The interest mentioned in the table is indicative, and it may vary depending on the bank’s terms and conditions.
